Strong Rates Across Segments Take Baltic Dry Index To Its 13-Year Peak

The Baltic Exchange’s main dry bulk sea freight index advanced to its 13-year peak on Monday, backed by robust demand across all vessel segments, especially capesizes. The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, jumped 73 points, or 1.6%, resulting 4,717, its highest since September 2008.

Strong Rates Across Segments Take Baltic Dry Index To Its 13-Year Peak
Representational Image | Via: Wikipedia

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Shipping analysts attributed the latest rally in the dry bulk market to global shipping constraints, port congestion in China due to the pandemic and an overall rebound in commodities demand.

The capesize index rose by 207 points, or 3%, to 7,600, marking its highest in nearly 12 years.

Average daily earnings for capesizes, which ferry 150,000-tonne cargoes such as iron ore and coal, levelled up $1721 to $63,030.

Brokerage Jefferies stated in a note: “Dry bulk rates should remain firm as demand growth is expected across all dry bulk commodities, with capesize rates likely to outperform during second half of 2021.”

Chinese iron ore futures gained on Monday, soaring more than 5% above a key 700-yuan ($108.26) level, while steel rebar and hot-rolled coils rose up amid production controls because of power cuts.

The panamax index elevated 8 points to 4,020, its highest in 11 weeks.

Average daily earnings for panamaxes, which transport 60,000-70,000 tonne coal or grain cargoes, rose $76 to $36,180.

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The supramax index increased 4 points resulting in 3,363, its highest in over three weeks. ($1 = 6.4662 Chinese yuan renminbi)

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